Merchants may be allowed to charge extra for credit cards

[DaveSignal]

I think it will depend on how they market it.  If they advertise an 'additional discount' for paying with cash, then I think people will not notice as much as if there was an 'extra surcharge' for paying with credit.

[trumpet-205]

---

@pipeguy wrote:

With no disrespect meant towards the poster, I don't believe you have any idea of the costs of running a small business. Swipe fees are way way over priced for what they give in return. Rather than argue the post, I'd suggest you look up the corporate SEC financials for MC/V/AE/Disc and look at how much those companies make from swipe fees. By "make" I mean profit over costs of all the so called benefits. AE and Discover are 100% self contained, MC/V add a layer on top of bank issuers (network costs).

Swipe fees are one of the greatest costs to merchants, more than rent, less than wages, but still a major cost factor for the small merchant. We heard all this "BS" with the debt card swift fee issue, once capped the world didn't end and prices have not increased.

---

Which is why you provide incentive for alternative payment, rather than surcharge. For example, Target provides 5% discount for those who use REDCard, to discourage people from using regular credit card.

Existing price already has swipe fee included, and now merchants want to double dip and charge surcharge on something that is already taken care off?

[DaveSignal]

Relax.  The big stores are not going to charge a surcharge.  If they do, people will either pay with cash/check and therefore spend less money (bad for the store imposing surcharge) or start shopping at stores that don't charge a surcharge (also bad for the store imposing surcharge).  They are going to use the ruling to try to negotiate swipe fees with the cards they accept, if anything.

Do you think that Amazon.com or any other online retailer is going to be charging a surcharge?   Of course not.  Amazon would have a price advantage over any local retailers imposing such surcharge...  

There is no way for a merchant imposing a surcharge to win.

[Anonymous]

I hope you are right about the surcharges Dave. Especially for airlines and hotels as a credit card is highly recommended.

Although most airlines and hotels do charge credit card booking fees in places where surcharges are already legal like Australia. I really hope that doesn't happen here. Americans have a different mindset with their credit cards and airlines and hotels to a lesser extent are already on the public's bad side with regard to fees.

As a frequent traveler I would hate to see that happen. In no instance would i pay the surcharge but it will be a pain trying to monitor my bank account if I happen to have multiple airline and hotel reservations at the same time I would risk my account being overdrawn due to the holds.

[marty56]

Perhaps OT but BML/Paypal is becomming more availble as a payment option online.  This may open up the alternative forms of payment market for online purchases which I see as a win for us.  I even have used BML to purchase a Southwest Arilines ticket.

[trumpet-205]

Check this out. Apparently there are ten states where state laws prohibit credit card surcharge.

http://usa.visa.com/personal/using_visa/checkout_fees/index.html

California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas.

[pipeguy]

True Story: I had a "customer" come in the other day and attempt to charge a sale for $0.65, yes 65 cents. I told the customer that I'd just as soon give him the item for free because his sale was not worth me processing for 65 cents - he said I never carry cash. He ended up adding something to the sale to make it $2.65 which I accepted, but frankly, a $1.00 processing fee on sales below say $5.00 is not a bad thing IMO.

http://bottomline.nbcnews.com/_news/2012/10/03/14184871-credit-card-swipe-fee-settlement-far-from-a-...

From the article:

The antitrust lawsuit, filed back in 2005, alleges MasterCard and Visa conspired with some of the largest banks in the country to set the swipe fee a merchant must pay every time a customer uses their credit card. 

[lithium78]

---

@pipeguy wrote:

True Story: I had a "customer" come in the other day and attempt to charge a sale for $0.65, yes 65 cents. I told the customer that I'd just as soon give him the item for free because his sale was not worth me processing for 65 cents - he said I never carry cash. He ended up adding something to the sale to make it $2.65 which I accepted, but frankly, a $1.00 processing fee on sales below say $5.00 is not a bad thing IMO.

http://bottomline.nbcnews.com/_news/2012/10/03/14184871-credit-card-swipe-fee-settlement-far-from-a-...

From the article:

The antitrust lawsuit, filed back in 2005, alleges MasterCard and Visa conspired with some of the largest banks in the country to set the swipe fee a merchant must pay every time a customer uses their credit card. 

---

Why not set a $10.00 minimum for plastic?  That's permissible under merchant agreements with all major credit cards now.

[pipeguy]

On Sunday I ran into the first store I've seen with a sign posted "we charge 2.5% for Credit Card purchases" - it was a fairly high priced nursery (plants) where I buy my Spring pepper and tomato plants. My bill was $24.07 and I paid cash. I shop there for a few things because their quality is good and for seedlings they are much cheaper than Lowes, but with the surcharge I'm going to limit my buying to just seedlings in the Spring - and NO I did not bust the chops of the hourly cashier.  

[compassion101]

---

@pipeguy wrote:

On Sunday I ran into the first store I've seen with a sign posted "we charge 2.5% for Credit Card purchases" - it was a fairly high priced nursery (plants) where I buy my Spring pepper and tomato plants. My bill was $24.07 and I paid cash. I shop there for a few things because their quality is good and for seedlings they are much cheaper than Lowes, but with the surcharge I'm going to limit my buying to just seedlings in the Spring - and NO I did not bust the chops of the hourly cashier.  

---

I'm not surprised to see a few small stores using this. The danger to the consumer, and particularly to the rewards cards geeks like us, will be when a major retailer does it. IMO it's a given that one of them eventually will, even though I expect it to be later rather than sooner. It will either meet with resistance or it won't. If it is met with enough resistance, they will probably reverse it, and if it doesn't, then other major retailers will add it in the future and it will become commonplace.